sbi mutual fund/ amit ramawat

8/13/2019 SBI Mutual Fund/ Amit Ramawat

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MANAGEMENT OF FINANCIAL

SERVICE

SBI MUTUAL FUNDS

CAPITAL ADEQUCY RATIO

CASH RESERVE RATIO

Faraz

MBA/8002/12


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INTRODUCTION

The evolution of State Bank of India can be traced back to the first decade of the 19th

century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June

1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January

1809. It was the first ever joint-stock bank of the British India, established under the

sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay

(established on 15 April 1840) and the Bank of Madras (established on 1 July 1843)

followed the Bank of Bengal. These three banks dominated the modern banking scenario

in India, until when they were amalgamated to form the Imperial Bank of India on 27

January1921.

An important turning point in the history of State Bank of India is the launch of the first

Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian

economy in general and the rural sector of the country, in particular. Until the Plan, the

commercial banks of the country, including the Imperial Bank of India, confined their

services to the urban sector. Moreover, they were not equipped to respond to the growing

needs of the economic revival taking shape in the rural areas of the country. Therefore, in

order to serve the economy as a whole and rural sector in particular, the All India Rural

Credit Survey Committee recommended the formation of a state-partnered and state bank

sponsored

The All India Rural Credit Survey Committee proposed the takeover of the Imperial

Bank of India, and integrating with it, the former state-owned or state-associate banks.

Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the

State Bank of India (SBI) was established on 1 July 1955. This resulted in making the

State Bank of India more powerful, because as much as a quarter of the resources of the


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Indian banking system were controlled directly by the State. Later on, the State Bank of

India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of

India to make the eight former State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the

480 offices comprising branches, sub offices and three Local Head Offices, inherited

from the Imperial Bank. Instead of serving as mere repositories of the communitys

savings and lending to creditworthy parties, the State Bank of India catered to the needs

of the customers, by banking purposefully the bank served the heterogeneous financial

needs of the planned economic development.

Branches

the corporate center of SBI is located in Mumbai. In order to cater to different functions,

there are several other establishments in and outside Mumbai, apart from the corporate

center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices,

located at major cities throughout India. It is recorded that SBI has about 10000 branches,

well networked to cater to its customers throughout India.

ATM Services

SBI provides easy access to money to its customers through more than 8500 ATMs in

India. The Bank also facilitates the free transaction of money at the ATMs of State Bank

Group, which includes the ATMs of State Bank of India as well as the Associate Banks

State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You

may also transact money through SBI Commercial and International Bank Ltd by using

the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries

The State Bank Group includes a network of eight banking subsidiaries and several non-

banking subsidiaries. Through the establishments, it offers various services including

merchant banking services, fund management, factoring services, primary dealership in

government securities, credit cards and insurance.


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The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)

Products And ServicesPersonal Banking

SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme

Other Services

Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques


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COMPANY PROFILE

SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an

investor base of over 5.8 million. With over 20 years of rich experience in fund

management, SBI MF brings forward its expertise in consistently delivering value to its

investors.

SBI MF draws its strength from India's Largest Bank State Bank of India and Socit

Gnrale Asset Management, France

SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an

enviable track record in judicious investments and consistent wealth creation. The

fund traces its lineage to SBI - Indias largest banking enterprise. The institution

has grown immensely since its inception and today it is India's largest bank,

patronized by over 80% of the top corporate houses of the country. SBI Mutual

Fund is a joint venture between the State Bank of India and Society General Asset

Management, one of the worlds leading fund management companies that

manages over US$ 500 Billion worldwide. At SBI Mutual Fund, resources are

considerably devoted to gain, maintain and sustain profitable insights into market

movements. The trust reposed on SBI-MF by over 5.4 million investors is a

genuine tribute to its expertise in Fund Management. SBI Mutual Fund is Indias

largest bank sponsored mutual fund and has an enviable track record in judicious

investments and consistent wealth creation.

Thus SBI-MF believes in

Proven Skills in Wealth Generation


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Exploiting expertise, compounding growth

Proven Skills in Wealth Generation.

SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an enviable trackrecord in judicious investments and consistent wealth creation.

The fund traces its lineage to SBI - Indias largest banking enterprise. The institution hasgrown immensely since its inception and today it is India's largest bank, patronized byover 80% of the top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Socit GnraleAsset Management, one of the worlds leading fund management companies thatmanages over US$ 500 Billion worldwide.

Exploiting expertise, compounding growth

In twenty years of operation, the fund has launched 38 schemes and successfullyredeemed fifteen of them. In the process it has rewarded it's investors handsomely withconsistent returns.

A total of over 5.8 million investors have reposed their faith in the wealth generationexpertise of the Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark indices and haveemerged as the preferred investment for millions of investors and HNIs.

Today, the fund manages over Rs. 42,100 crores of assets and has a diverse profile ofinvestors actively parking their investments across 38 active schemes.

The fund serves this vast family of investors by reaching out to them through network ofover 130 points of acceptance, 29 investor service centers, 59 investor service desks and


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6 Investor Service Points.

SBI Mutual is the first bank-sponsored fund to launch an offshore fundResurgent IndiaOpportunities Fund.

Growth through innovation and stable investment policies is the SBI MF credo.

Mr. Deepak Kumar ChatterjeeManaging Director & Chief ExecutiveOfficer

Mr. Didier TurpinDy. Chief Executive Officer

Mr. V. V. AnandExecutive Vice President

Mr. K. T. RavindranChief Operating Officer

Ms. Aparna NirgudeChief Risk Officer

Ms. Vinaya DatarCompany Secretary & Compliance Officer

Mr. Navneet Munot

Chief Investment Officer

Mr. R. S. Srinivas Jain

Chief Marketing OfficerMr. C A SantoshChief Manager - Customer Service.


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OPERATIONS

In twenty years of operation, the fund has launched thirty-eight schemes and successfully

redeemed fifteen of them. In the process it has rewarded its investors handsomely with

consistently high returns. A total of over 5.4 million investors have reposed their faith in

the wealth generation expertise of the Mutual Fund. Schemes of the Mutual fund have

consistently outperformed benchmark indices and have emerged as the preferred

investment for millions of investors and HNIs. Today, the fund manages take care of

almost over Rs. 31,794 cores of assets and has a diverse profile of investors actively

parking their investments across 36 active schemes. The fund serves this vast family of

investors by reaching out to them through network of over 130 points of acceptance, 28

investor service centers, 46 investor service desks and 56 district organizers.

HISTORICAL VIEW

SBI MUTUAL FUNDS

1987- SBI mutual fund was the first bank sponsored mutual fund in India, incorporated

by SBI bank in June 1987.

1987- SBI mutual fund launches the fist scheme Magnum regular income scheme1987

1993- May 1993, SBI took over the principal trustee of the fund. The investment

management function was entrusted to SBI Funds Management Pvt Ltd.

1993- SBI mutual funds launches SBI magnum Taxgain on March 31 1993. The fund is

now the largest managed schemes and is a flagship ELSS scheme in industry.


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1999- SBI mutual funds launches magnum sector fund umbrella in July 1999. The fund

includes sub funds like MSFU FMCG, MSFU Pharmacy, MSFU IT, MSFU emerging

business and MSFU contra fund (Indias 1st contrarian based equity fund)

2002- SBI mutual fund launches its investors education initiative to reach out to the

Investors and to educate about them mutual funds as interactive investment option.

2004- SBI mutual funds launches dedicated fund targeted to the NRI investors. NRI

investment fund to provide attractive returns through periodic dividends or through

capital appreciation.

2004- SBI mutual funds formalize its joint venture with Society General Asset

management of France in December 2004.

2005- SBI mutual fund launches magnum COMMA on August 17 2005, invests in stocks

of commodity based companies.

2006- Most preferred mutual fund 2006-awared by CNBC awaaz.

2006- SBI mutual fund launches SBI ONE INDIA fund, 1st equity based fund on

regional focus.

2007- Mutual fund of the year -2007 CNBC TV 18CRISIL

2007- Record mobilization in NFO- SBI INFRASTRUCTURE FUND- SERIES 1.


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AWARDS

Our expertise and excellent performance is frequently recognized by the mutual fundindustry.

SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award2007 and 5 Awards for our schemes.

2010

2009

2008
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2007
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2006

Much of the credit for sustained performance of SBIMF goes to our team. They are thereal performers whose expertise and capability rewards our investors
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COMPETITORS OF SBI MUTUAL FUND

Some of the main competitors of SBI Mutual Fund as follow

ICICI Mutual FundReliance Mutual Fund

UTI Mutual Fund

Birla Sun Life Mutual F und

Kotak Mutual Fund

HDFC Mutual Fund

Sundaram Mutual Fund

LIC Mutual Fund


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STRUCTURE OF MF IN INDIA

Like other countries, India has a legal framework within which mutual funds must be

constituted. In India, open and closed-end funds operate under the same regulatory

structure, i.e. in India; all mutual funds are constituted along one unique structure-as unit

trust. A mutual fund in India is allowed to issue open-end and close end schemes under

a common legal structure. Therefore, a mutual fund may have different schemes (open

and closed-end) under it i.e. under one unit trust, at any point of time. The structure,

which is required to be followed by mutual funds in India, lay down under SEBI (Mutual

Fund) Regulations, 1996.


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The Fund Sponsor

'Sponsor" is defined under SEBI regulations as any person who, acting alone or in

combination with another body corporate, establishes a, mutual fund. The sponsor of a

fund is akin to the promoter of companies he gets the fund registered with SEBI. The

sponsor will form a Trust and appoint a board of Trustees. The sponsor will also

generally appoint 11 Asset management Company (AMC) as fund managers. The

sponsor ill also appoint a Custodian to hold the fund assets. All these appointment are

made in accordance with the SEBI regulations. Per the existing SEBI regulations, for a

person to qualify as a sponsor, must contribute at least 40% of the net worth of the AMC

and issues a sound financial track over five years prior to registration.

Mutual Funds as Trusts

Mutual fund in India is constituted in the form of a Public Trust under the Indian Trusts

Act 1882.The fund invites investors. Contributetheir money in the common pool by

subscribing to units Issued by various schemes established by the trust as

evidence of their beneficial interest in the fund.

The trust or fund has no legal capacity itself rather it is the Trustee(s) who

have legal capacity and therefore the trustees take all acts in relation to the

trust on its behalf.Trustees

A board of trustees - a body of individuals, or a Trust company - a corporate

body, may manage the Trust. Board of Trustees manages most of the funds

in India. The Board or the Trustee Company (body of individuals, corporate

body, for managing the portfolio, appoints an Asset Management Company.

The Trust is created through a document called the Trust Deed that isexecuted by the Fund Sponsor in favors of the trustees. They are the

primary guardian of the unit holder's funds and assets. They ensure that

AMC's operations are along professional lines.


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Asset Management Company

The role of an Asset Management Company (AMC) is to act as the investment

manager of the trust under the Board supervision.

Transfer Agents

Transfer agents are responsible for issuing and redeeming units of the

mutual fund and provide other related services such as preparation of

transfer documents updating investors' records. A fund may choose to

out this activity in-house or by an outside transfer agent.

Distributors

AMCs usually appoint Distributors or Brokers, who sell units on behalf of the

fund. Some funds require that all transactions to be routed through such brokers.

In India, besides brokers, independent individuals are appointed as agents for the

purpose of selling the fund scheme to the investors. While individual constitute the

largest segment in the category of mutual fund distributors, other distributors include

banks, NBFCs and corporate.

Bankers

A fund's activities involve dealing with the money on a continuous basis primarily

with respect to buying and selling units, paying for investment made, receiving the

proceeds on sale of investment and discharging its obligations towards operating

expenses. A funds banker therefore plays a crucial role with respect to its financial

dealings by holding its bank account and providing it with remittance services

Custodian and Depository

The custodian is appointed by the Board of Trustees for safekeeping of securities in

terms of physical delivery and eventual safe keeping or participating in the

clearing system through approved depository companies on behalf of the


17/27

mutual fund and must fulfill its responsibilities in accordance with its

agreement with the mutual fund.

The Indian markets are moving away from having physical certificates for securities,

to ownership of these securities in dematerialized form with a depository. Thus, a

Depository Participant will hold a mutual funds dematerialized securities holdings.

A fund's physical securities will continue to be held by a custodian.


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TYPES OF SBI MUTUAL FUND SCHEMES

Type Scheme

Name

Investment

Objective

Minimum

Investment

amount

Additional

Investment

Exit

Load

Expenses

Ratio

Equity SBIArbitrageOpportunities Fund

"To provide capitalappreciation andregular income forunit holders byidentifying profitable

arbitrageopportunities betweenthe spot andderivative marketsegments as alsothrough investment ofsurplus cash in debtand money marketinstruments "

Rs. 25000 Rs.1000 "For exitwithin 7businessdays fromthe date

ofallotment-0.25%,For exitafter 7businessdays fromthe dateofallotment- Nil "

1.22

Equity SBIMagnumBlue-chipFund

"To provide investorswith opportunities forlong-term growth incapital through anactive management ofinvestments in adiversified basket ofequity stocks ofcompanies whosemarket capitalizationis at least equal to or

more than the leastmarket capitalizedstock of BSE 100Index."

Rs.5000 Rs.1000 Nil 2.50

Equity SBIMagnumCOMMA

"To generateopportunities forgrowth along with

Rs.5000 Rs.1000 "For exitwithin 1year from

2.50


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Fund possibility ofconsistent returns byinvestingpredominantly in aportfolio of stocks of

companies engagedin the commoditybusiness within thefollowing sectors -Oil & Gas, Metals,Materials &Agriculture and indebt & money marketinstruments."

the dateofallotment- 1%; Forexit after

1 yearfrom thedate ofallotment- Nil."

Equity SBIMagnum

EquityFund

"The objective of thescheme is to provide

the investorLongterm capitalappreciation byinvesting in highgrowth companiesalong with theliquidity of an open-ended schemethrough investmentsprimarily in equitiesand the balance in

debt and moneymarket instruments."

Rs.5000 Rs.1000 "For exitwithin 1

year fromthe dateofallotment- 1%; Forexit after1 yearfrom thedate ofallotment- Nil."

2.50

Equity SBIMagnumGlobalFund 94

"To provide investorsmaximum growthopportunity throughwell researchedinvestments in Indianequities, PCDs andFCDs from selectedindustries with high

growth potential andin Bonds"

Rs. 2000 Rs. 500 "For exitwithin 1year fromthe dateofallotment- 1%; Forexit after


2.50

Equity SBIMagnumIndex Fund

Thescheme willinvest in stockscomprising the S&P

Rs.5000 Rs.1000 Exit Load1.00%for exit

1.50


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CNX Nifty index inthe same proportionas their weight age inthe index with theobjective of

achieving returnsequivalent to theTotal Returns Indexof S&P CNX Niftyindex by minimizingthe performancedifference betweenthe benchmark indexand the scheme. TheTotal Returns Indexis an index that

reflects the returns onthe index from indexgain/loss plusdividend payments bythe constituent stocks.The scheme willadopt a passiveinvestment approach"

within 7businessdays fromthe dateof

investment

Equity SBIMagnumMidcap

Fund

"To provide investorswith opportunities forlong-term growth in

capital along with theliquidity of an open-ended scheme byinvestingpredominantly in awell diversifiedbasket of equitystocks of Midcapcompanies. Midcapcompanies are thosecompanies whose

market capitalizationat the time ofinvestment is lowerthan the last stock inthe S&P CNX NiftyIndex less 20%(upper range) and

Rs. 5000 Rs.1000 "For exitwithin 1year from

the dateofallotment- 1%; Forexit after1 yearfrom thedate ofallotment- Nil."

2.50


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above Rs. 200 cores."

Equity SBIMagnumMulti CapFund

"To provide investorswith opportunities forlong-term growth incapital along with theliquidity of an open-ended schemethrough an activemanagement ofinvestments in adiversified basket ofequity stocksspanning the entiremarket capitalizationspectrum and in debt

and money marketinstruments "

Rs. 5000 Rs.1000 "For exitwithin 1year fromthe dateofallotment- 1%; Forexit after1 yearfrom thedate ofallotment- Nil."

2.50

Equity SBIMagnumMultiplierPlus 1993

"The objective of thescheme is to providethe investor with longterm capitalappreciation/dividends along withthe liquidity of anopen-ended scheme.

The scheme willinvest in a diversifiedportfolio of equitiesof high growthcompanies "

Rs. 1000 Rs.500 "For exitwithin 1year fromthe dateofallotment- 1%; Forexit after


2.50

Equity SBIMagnumNRIInvestmentFund FlexiAsset Plan

"To provide attractivereturns to theMagnum/unit holdersholders either throughperiodic dividends orthrough capital

appreciation throughan actively managedportfolio of debt,equity and moneymarket instruments. "

Rs.50000 Rs.1000 "For exitwithin 1year fromthe dateofallotment

- 1%; Forexit after1 yearfrom thedate ofallotment- Nil."

2.50


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Equity SBIMagnumSectorUmbrellaContra

"To provide theinvestors maximumgrowth opportunitythrough equityinvestments in stocks

of growth orientedsectors. There arefour sub-fundsdedicated to specificsectors viz. IT,Pharmaceuticals,FMCG, Contra subfund for investmentin stocks currentlyout of favor andEmerging Business

Fund (EBF) toparticipate in thegrowth potentialpresented by variouscompanies that areconsidered emergentand have exportorientation/outsourcing opportunities or areglobally competitiveby investing in the

stocks representingsuch companies. Thefund may alsoevaluate emergingbusinesses withgrowth potential anddomestic Focus "

Rs. 2000 Rs.500 "For exitwithin 1year fromthe dateof

allotment- 1%; Forexit after1 yearfrom thedate ofallotment- Nil."

2.50

Equity SBIMagnumSectorUmbrella

EmergingBusinesses

"To provide theinvestors maximumgrowth opportunitythrough equity

investments in stocksof growth orientedsectors. There arefour sub-fundsdedicated to specificsectors viz. IT,Pharmaceuticals,

Rs. 2000 Rs.500 "For exitwithin 1year fromthe date

ofallotment- 1%; Forexit after1 yearfrom thedate of

2.50


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FMCG, Contra subfund for investmentin stocks currentlyout of favor andEmerging Business

Fund (EBF) toparticipate in thegrowth potentialpresented by variouscompanies that areconsidered emergentand have exportorientation/outsourcing opportunities or areglobally competitiveby investing in the

stocks representingsuch companies. Thefund may alsoevaluate emergingbusinesses withgrowth potential anddomestic Focus "

allotment- Nil."

Debt SBIMagnumGilt STP

"To provide theinvestors/unit holderswith returns generatedthrough investments ingovernment securitiesissued by the CentralGovernment and / or aState Government "

"Growth -Rs.25000Dividend -Rs.100000"

"GrowthOption -Rs. 5000DividendOption -Rs. 5000"

CDSC -0.15% forexit within 15days from thedate ofinvestment

0.84


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PROCEDURE

Fresh Purchase: After deciding on the type of scheme, the investor will have to fill in

the Application form, attach a payment instrument and submit it at any of the funds'

collection centers before the cut off time. The investor has to invest in rupees and units

will be allotted to him in fractions depending upon the NAV.

Additional Purchase: Buying more units either of the same scheme or of a different

Scheme under the SAME FOLIO is an additional purchase, which can be done through

Additional Purchase slips provided along with the account statement. After filling the

Same, the investor will have to attach a cheque with it and submit it at any of the

collection centers before the cut-off time.

Switch Units: A switch request will have to be filled in and submitted at any of the

Collection centers before the cut off time. SWITCH can be done with either partial or all

Units under a particular scheme to another scheme as specified by him under the same

Folio.

Redeem / Repurchase Units: If the fund is open ended, the investor has to send the

Repurchase requisition slip, duly completed and signed, to any of our branches. It isPossible to lodge repurchase requests on the Internet also. The redemption can be done

for all units, partial units, or for an amount.

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)

AMFI is a trade body of all the mutual funds in India. It was incorporated in August 1995

As a non-profit organization to promote and protect the interests of mutual funds and

Their Unit holders define and maintain high ethical and professional standards and

Enhance Public awareness of mutual funds. All mutual funds in India are members of the

Association. AMFI works through committees and working groups.


25/27

Capital Adequacy Ratio

Capital adequacy is as a measure of financial strength and securities in a firm mostly in

banks. It is expressed as percentage ratio of a bank's capital to its assets or risks. Capital

adequacy ratio is applicable in banks and other financial institutions.

TIER 1 CAPITAL = (paid up capital + statutory reserves + disclosed free reserves) -(equity investments in subsidiary + intangible assets + current & b/f losses)

TIER 2 CAPITAL = A) Undisclosed Reserves + B) General Loss reserves + C) hybriddebt capital instruments and subordinated debts

where Risk can either be weighted assets ( ) or the respective national regulator'sminimum total capital requirement.


26/27

Statutory liquidity ratio

Statutory liquidity ratio refers amount that the commercial banks require to maintain in

the form of gold or govt. approved securities before providing credit to the customers.

Here by approved securities we mean, bond and shares of different companies. Statutory

Liquidity Ratio is determined and maintained by the Reserve Bank of India in order to

control the expansion of bank credit. It is determined as percentage of total demand and

time liabilities. Time Liabilities refer to the liabilities, which the commercial banks are

liable to pay to the customers after a certain period mutually agreed upon and demand

liabilities are such deposits of the customers which are payable on demand. example of

time liability is a fixed deposits for 6 months, which is not payable on demand but after

six months. example of demand liability is deposit maintained in saving account or

current account, which are payable on demand through a withdrawal form of a cheque.

SLR is used by bankers and indicates the minimum percentage of deposits that the bank

has to maintain in form of gold,cash or other approved securities.Thus, we can say that it

is ratio of cash and some other approved liabilities(deposits). It regulates the credit

growth in India

SLR rate = (liquid assets / (demand + time liabilities)) 100%

This percentage is fixed by the central bank. The maximum and minimum limits for theSLR are 40% and 25% respectively in India.[1]Following the amendment of the Bankingregulation Act(1949) in January 2007, the floor rate of 25% for SLR was removed.

Presently, the SLR is 23 %.


27/27

SOURCES

1.www.sbimf.com

2.www.wikipedia.com

3.www.sbi.co.in

sbi mutual fund/ amit ramawat

Documents